THE NATIONAL HIGHWAYS AUTHORITY OF INDIA ACT, 1988 
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ARRANGEMENT OF SECTIONS 
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CHAPTER I 

PRELIMINARY 

SECTIONS 

1.  Short title, extent and commencement. 
2.  Definitions. 

CHAPTER II 

THE NATIONAL HIGHWAYS AUTHORITY OF INDIA 

3.  Constitution of the Authority. 
4.  Term of office and conditions of service of members. 
5.  Disqualifications for appointment as member. 
6.  Eligibility of member for reappointment. 
7.  Meetings. 
8.  Vacancy in the Authority not to invalidate proceedings. 
9.  Appointment of officers, consultants and other employees of the Authority. 
10.  Authority to act on business principles. 

CHAPTER III 

PROPERTY AND CONTRACTS 

11.  Power of the Central Government to vest or entrust any national highway in the Authority. 
12.  Transfer of assets and liabilities of the Central Government to the Authority. 
13.  Compulsory acquisition of land for the Authority. 
14.  Contracts by the Authority. 
15.  Mode of executing contracts on behalf of the Authority. 

16.  Functions of the Authority. 

CHAPTER IV 

FUNCTIONS OF THE AUTHORITY 

CHAPTER V 

FINANCE, ACCOUNTS AND AUDIT 

17.  Additional capital and Grants to the Authority by the Central Government. 
18.  Fund of the Authority. 
19.  Budget. 
20.  Investment of funds. 
21.  Borrowing powers of the Authority. 
22.  Annual report. 

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SECTIONS 

23.  Accounts and audit. 
24.  Annual report and auditor’s report to be laid before Parliament. 

CHAPTER VI 

MISCELLANEOUS 

25.  Delegation of powers. 
26.  Authentication of orders and other instruments of the Authority. 
27.  Employees of the Authority to be public servants. 
28.  Protection of action taken in good faith. 
29.  Power of the Authority to undertake certain works. 
30.  Power to enter. 
31.  Power of the Central Government to temporarily divest the Authority of the management of any 

national highway. 

32.  Power of the Central Government to supersede the Authority. 
33.  Power of the Central Government to issue directions. 
34.  Power of the Central Government to made rules. 
35.  Power of the Authority to make regulations. 
36.  Power to remove difficulties. 
37.  Rules and regulations to be laid before Parliament. 

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THE NATIONAL HIGHWAYS AUTHORITY OF INDIA ACT, 1988 

ACT NO. 68 OF 1988 

An  Act  to  provide  for  the  constitution  of  an  Authority  for  the  development,  maintenance  and 
management of national highways and for matters connected therewith or incidental thereto. 

BE it enacted by Parliament in the Thirty-ninth Year of the Republic of India as follows:— 

[16th December, 1988.] 

CHAPTER I 

PRELIMINARY 

1.  Short  title,  extent  and  commencement.—(1)  This  Act  may  be  called  the  National  Highways 

Authority of India Act, 1988. 

(2) It extends to the whole of India. 
(3)  It  shall  come  into  force  on  such  date1  as  the  Central  Government  may,  by  notification  in  the 

Official Gazette, appoint. 

2. Definitions.—In this Act, unless the context otherwise requires,— 

(a) “Authority” means the National Highways Authority of India constituted under section 3; 

(b) “Chairman” means the Chairman of the Authority; 

(c) “employee” means a person in the full-time service of the Authority; 

(d)  “member”  means  a  member  of  the  Authority  appointed  under  section  3  and  includes  the 

Chairman; 

(e)  “national  highway”  means  any  highway  for  the  time  being  declared  as  a  national  highway 

under section 2 of the National Highways Act, 1956 (48 of 1956); 

(f) “prescribed” means prescribed by rules made under this Act; 

(g) “regulations” means regulations made by the Authority under this Act; 

(h)  words  and  expressions  used  herein  and  not  defined  but  defined  in  the  National  Highways           

Act, 1956 (48 of 1956) shall have the meanings assigned to them in that Act. 

CHAPTER II 

THE NATIONAL HIGHWAYS AUTHORITY OF INDIA 

3. Constitution of the Authority.—(1) With effect from such date as the Central Government may, 
by notification in the Official Gazette, appoint in this behalf, there shall be constituted for the purposes of 
this Act an Authority to be called the National Highways Authority of India. 

(2) The Authority shall be a body corporate by the name aforesaid having perpetual succession and a 
common seal, with power, subject to the provisions of this Act, to acquire, hold and dispose of property, 
both movable and immovable, and to contract and shall by the said name sue and be sued. 

2[(3) The Authority shall consist of— 

(a) a Chairman; 

(b) not more than six full-time members; and 

(c) not more than six part-time members, 

to be appointed by the Central Government by notification in the Official Gazette: 

1.  15th  June,  1989,  vide  notification  No.  S.O.  451(E),  dated  15th  June,  1989,  see  Gazette  of  India,  Extraordinary,  Part  II,              

sec. 3(ii). 

2. Subs. by Act 19 of 2013, s. 2, for sub-section 3 (w.e.f. 10-9-2013). 

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Provided that the Central Government shall, while appointing the part-time members, ensure that at 
least  two  of  them  are  non-Government  professionals  having knowledge  or  experience  in  financial 
management, transportation planning or any other relevant discipline.] 

4. Term of office and conditions of service of members.—The term of office and other conditions 

of service of the members shall be such as may be prescribed. 

5.  Disqualifications  for  appointment  as  member.—A  person  shall  be  disqualified  for  being 

appointed as a member if he— 

(a) has been convicted and sentenced to imprisonment for an offence which, in the opinion of the 

Central Government, involves moral turpitude; or 

(b) is an undischarged insolvent; or 

(c) is of unsound mind and stands so declared by a competent Court; or 

(d) has been removed or dismissed from the service of the Government or a Corporation owned 

or controlled by the Government; or 

(e) has, in the opinion of the Central Government, such financial or other interest in the Authority 

as is likely to affect prejudicially the discharge by him of his functions as a member. 

6. Eligibility of member for reappointment.—Subject to the other terms and conditions of service 
as  may  be  prescribed,  any  person  ceasing  to  be  a  member  shall  be  eligible  for  reappointment  as  such 
member. 

7. Meetings.—(1) The Authority shall meet at such times and places and shall observe such rules of 
procedure in regard to the transaction of business at its meetings, including the quorum thereat, as may be 
provided by regulations. 

(2) If for any reason the Chairman is unable to attend any meeting of the Authority any other member 

chosen by the members present at the meeting shall preside at the meeting. 

(3) All questions which come up before any meeting of the Authority shall be decided by a majority 
of votes of the members present and voting, and in the event of an equality of votes, the Chairman, or in 
his absence the person presiding, shall have and exercise a second or casting vote. 

8. Vacancy in the Authority not to invalidate proceedings.—No act or proceeding of the Authority 

shall be invalidated merely by reason of— 

(a) any vacancy in, or any defect in the constitution of, the Authority; or 

(b) any defect in the appointment of a person acting as a member of the Authority; or 

(c) any irregularity in the procedure adopted by the Authority not affecting the merits of the case. 

9.  Appointment  of  officers,  consultants  and  other  employees  of  the  Authority.—(1)  For  the 
purpose  of  discharging  its  functions,  the  Authority  shall  appoint  such  number  of  officers  and  other 
employees  as  it  may  consider  necessary  on  such  terms  and  conditions  as  may  be  laid  down  by  the 
regulations. 

(2)  The  Authority  may  appoint,  from  time  to  time,  any  person  as  adviser  or  consultant  as  it  may 

consider necessary, on such terms and conditions as may be laid down by the regulations. 

10. Authority to act on business principles.—In the discharge of its functions under this Act, the 

Authority shall act, so far as may be, on business principles. 

CHAPTER III 

PROPERTY AND CONTRACTS 

11.  Power  of  the  Central  Government  to  vest  or  entrust  any  national  highway  in  the 
Authority.—The  Central  Government  may,  from  time  to  time,  by  notification  in  the  Official  Gazette, 
vest in, or entrust to, the Authority, such national highway or  any stretch thereof as may be specified in 
such notification. 

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12. Transfer of assets and liabilities of the Central Government to the Authority.—(1) On and 

from the date of publication of the notification under section 11,— 

(a)  all  debts,  obligations  and  liabilities  incurred,  all  contracts  entered  into  and  all  matters  and 
things engaged to be done by, with, or for, the Central Government, immediately before such date for 
or  in  connection  with  the  purposes  of  any  national  highway  or  any  stretch  thereof  vested  in,  or 
entrusted to, the Authority under that section, shall be deemed to have been incurred, entered into and 
engaged to be done by, with, or for, the Authority; 

(b) all non-recurring expenditure incurred by or for the Central Government for or in connection 
with  the  purposes  of  any  national  highway  or  any  stretch thereof,  so  vested in, or  entrusted to,  the 
Authority, up to such date and declared to be capital expenditure by the Central Government shall, 
subject  to  such  terms  and  conditions  as  may  be  prescribed,  be  treated  as  capital  provided  by  the 
Central Government to the Authority; 

(c) all sums of money due to the Central Government in relation to any national highway or any 
stretch  thereof,  so  vested  in,  or  entrusted  to,  the  Authority  immediately  before  such  date  shall  be 
deemed to be due to the Authority; 

(d)  all  suits  and  other  legal  proceedings  instituted  or  which  could  have  been  instituted  by  or 
against  the  Central  Government  immediately  before  such  date  for  any  matter  in  relation  to  such 
national highway or any stretch thereof may be continued or instituted by or against the Authority. 

(2) If any dispute arises as to which of the assets, rights or liabilities of the Central Government have 

been transferred to the Authority, such dispute shall be decided by the Central Government. 

1[13. Compulsory acquisition of land for the Authority.—Any land required by the Authority for 
discharging its functions under this Act shall be deemed to be land needed for a public purpose and such 
land  may  be  acquired  for  the  Authority  under  the  provisions  of  the  National  Highways  Act,  1956                       
(48 of 1956).] 

14.  Contracts  by  the  Authority.—Subject  to  the  provisions  of  section  15,  the  Authority  shall  be 
competent to enter into and perform any contract necessary for the discharge of its functions under this 
Act. 

15. Mode of executing contracts on behalf of the Authority.—(1) Every contract shall, on behalf of 
the Authority, be made by the Chairman or such other member or such officer of the Authority as may be 
generally or specially empowered in this behalf by the Authority and such contracts or classes of contracts 
as may be specified in the regulations shall be sealed with the common seal of the Authority: 

Provided that no contract exceeding such value or amount as the Central Government may prescribe 

in this behalf shall be made unless it has been previously approved by that Government: 

Provided further that no contract for the acquisition or sale of immovable property or for the lease of 
any such property for a term exceeding thirty years and no other contract exceeding such value or amount 
as  the  Central  Government  may  prescribe  in  this  behalf  shall  be  made  unless  it  has  been  previously 
approved by that Government. 

(2) Subject to the provisions of sub-section (1), the form and manner in which any contract shall be 

made under this Act shall be such as may be provided by regulations. 

(3) No contract which is not in accordance with the provisions of this Act and the regulations shall be 

binding on the Authority. 

CHAPTER IV 

FUNCTIONS OF THE AUTHORITY 

16. Functions of the Authority.— (1) Subject to the rules made by the Central Government in this 
behalf, it shall be the function of the Authority to develop, maintain and manage the national highways 
and any other highways vested in, or entrusted to, it by the Government. 

1. Subs. by Act 16 of 1997, s. 6, for section 13 (w.e.f. 24-1-1997). 

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(2) Without prejudice to the generality of the provisions contained in sub-section (1), the Authority 

may, for the discharge of its functions—  

(a) survey, develop, maintain and manage highways vested in, or entrusted to, it; 

(b)  construct  offices  or  workshops  and  establish  and  maintain  hotels,  motels,  restaurants  and             

rest-rooms at or near the highways vested in, or entrusted to, it; 

(c) construct residential buildings and townships for its employees; 

(d) regulate and control the plying of vehicles on the highways vested in, or entrusted to, it for the 

proper management thereof; 

(e) develop and provide consultancy and construction services in India and abroad and carry on 
research activities in relation to the development, maintenance and management of highways or any 
facilities thereat; 

(f) provide such facilities and amenities for the users of the highways vested in, or entrusted to, it 

as are, in the opinion of the Authority, necessary for the smooth flow of traffic on such highways; 

(g)  form  one  or  more  companies  under  the  Companies  Act,  1956  (1  of  1956)  to  further  the 

efficient discharge of the functions imposed on it by this Act; 

1[(h) engage, or entrust any of its functions to, any person on such terms and conditions as may be 

prescribed;] 

(i) advise the Central Government on matters relating to highways; 

(j) assist, on such terms and conditions as may be mutually agreed upon, any State Government in 

the formulation and implementation of schemes for highway development; 

(k)  collect  fees  on  behalf  of  the  Central  Government  for  services  or  benefits  rendered  under 
section 7 of the National Highways Act, 1956 (48 of 1956), as amended from time to time, and such 
other fees on behalf of the State Governments on such terms and conditions as may be specified by 
such State Governments; and 

(l) take all such steps as may be necessary or convenient for, or may be incidental to, the exercise 

of any power or the discharge of any function conferred or imposed on it by this Act. 

(3) Nothing contained in this section shall be construed as— 

(a) authorising the disregard by the Authority of any law for the time being in force; or 

(b) authorising any person to institute any proceeding in respect of a duty or liability to which the 

Authority or its officers or other employees would not otherwise be subject under this Act. 

CHAPTER V 

FINANCE, ACCOUNTS AND AUDIT 

2[17. Additional capital and grants to  the Authority by the Central Government.—The Central 

Government may, after due appropriation made by Parliament, by law in this behalf,— 

(a) provide any capital that may be required by the Authority for the discharge of its functions 
under  this  Act  or  for  any  purpose  connected  therewith  on  such  terms  and  conditions  as  that 
Government may determine; 

(b) pay to the Authority, on such terms and conditions as the Central Government may determine, 
by way of loans or grants such sums of money as that Government may consider necessary for the 
efficient discharge by the Authority of its functions under this Act.] 

18.  Fund  of  the  Authority.—(1)  There  shall  be  constituted  a  Fund  to  be  called  the  National 

Highways Authority of India Fund and there shall be credited thereto— 

(a) any grant or aid received by the Authority; 

1. Subs. by Act 16 of 1997, s. 7, for clause (h) (w.e.f. 24-1-1997). 
2. Subs. by s. 8, ibid., for section 17 (w.e.f. 24-1-1997). 

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(b) any loan taken by the Authority or any borrowings made by it; 

(c) any other sums received by the Authority. 

(2) The Fund shall be utilised for meeting— 

(a) expenses of the Authority in the discharge of its functions having regard to the purposes for 
which such grants, loans or borrowings are received and for matters connected therewith or incidental 
thereto; 

(b)  salary,  allowances,  other  remuneration  and  facilities  provided  to  the  members,  officers  and 

other employees of the Authority; 

(c) expenses on objects and for purposes authorised by this Act. 

19.  Budget.—The  Authority  shall  prepare,  in  such  form  and  at  such time  in  each  financial  year  as 
may be prescribed, its budget for the next financial year, showing the estimated receipts and expenditure 
of the Authority and forward the same to the Central Government. 

20.  Investment  of funds.—The  Authority  may  invest  its  funds  (including  any  reserve  fund) in  the 

securities of the Central Government or in such other manner as may be prescribed. 

21. Borrowing powers of the Authority.—(1) The Authority may, with the consent of the Central 
Government or in accordance with the terms of any general or special authority given to it by the Central 
Government, borrow money from any source by the issue of bonds, debentures or such other instruments 
as it may deem fit for discharging all or any of its functions under this Act. 

(2) Subject to such limits as the Central Government may, from time to time, lay down, the Authority 
may borrow temporarily by way of overdraft or otherwise, such amounts as it may require for discharging 
its functions under this Act. 

(3)  The  Central  Government  may  guarantee  in  such  manner  as  it  thinks  fit  the  repayment  of  the 
principal and the payment of interest thereon with respect to the borrowings made by the Authority under 
sub-section (1). 

22.  Annual  report.—The  Authority  shall  prepare,  in  such  form  and  at  such  time  in  each  financial 
year  as  may  be  prescribed,  its  annual  report,  giving  a  full  account  of  its  activities  during  the  previous 
financial year, and submit a copy thereof to the Central Government. 

23.  Accounts  and  audit.—The  accounts  of  the  Authority  shall  be  maintained  and  audited  in  such 
manner as may, in consultation with the Comptroller and Auditor-General of India, be prescribed and the 
Authority  shall  furnish,  to  the  Central  Government  before  such  date  as  may  be  prescribed,  its  audited 
copy of accounts together with the auditor’s report thereon. 

24. Annual report and auditor’s report to be laid before Parliament.—The Central Government 
shall cause the annual report and auditor’s report to be laid, as soon as may be, after they are received, 
before each House of Parliament. 

CHAPTER V 

MISCELLANEOUS 

25. Delegation of powers.—The Authority may, by  general or special order in writing, delegate to 
the  Chairman  or  any  other  member  or  to  any  officer  of  the  Authority,  subject  to  such  conditions  and 
limitations,  if  any,  as  may  be  specified  in  the  order,  such  of  its  powers  and  functions  under  this  Act 
(except its powers under section 35) as it may deem necessary. 

26. Authentication of orders and other instruments of the Authority.—All orders, decisions and 
other instruments of the Authority shall be  authenticated by the signature of the Chairman or any other 
member or any officer of the Authority authorised by it in this behalf. 

27. Employees of the Authority to be public servants.—All members, officers and employees of 
the Authority shall, when acting or purporting to act in pursuance of the provisions of this Act or of any 
rule or regulation made thereunder, be deemed to be public servants within the meaning of section 21 of 
the Indian Penal Code (45 of 1860). 

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28.  Protection  of  action  taken  in  good  faith.—(1)  No  suit,  prosecution  or  other  legal  proceeding 
shall lie against the Authority or any member or officer or employee of the Authority for anything which 
is in good faith done or intended to be done under this Act or the rules or regulations made thereunder. 

(2) No suit, prosecution or other legal proceeding shall lie against the Authority or any  member or 
officer or employee of the Authority for any damage caused or likely to be caused by anything which is in 
good faith done or intended to be done under this Act or the rules or regulations made thereunder. 

29. Power of the Authority to undertake certain works.—The Authority may undertake to carry 
out on behalf of the Government or any local authority any works or services or any class of works or 
services on such terms and conditions as may be agreed upon between the Authority and the Government 
or local authority concerned. 

30.  Power  to  enter.—Subject  to  any  regulations  made  in  this  behalf  any  person,  generally  or 
specially authorised by the Authority in this behalf, may, whenever it is necessary so to do for any of the 
purposes of this Act, at all reasonable times, enter upon any land or premises, and—  

(a) make any inspection, survey, measurement, valuation or enquiry; 

(b) take levels; 

(c) dig or bore into sub-soil; 

(d) set out boundaries and intended lines of work; 

(e) mark such levels, boundaries and lines by placing marks and cutting trenches; or 

(f) do such other acts or things as may be prescribed: 

Provided that no such person shall enter any boundary or any enclosed court or garden attached to a 
dwelling-house (except with the consent of the occupier thereof) without previously giving such occupier 
at least twenty-four hours’ notice in writing of his intention to do so. 

31. Power of the Central Government to temporarily divest the Authority of the management of 
any  national  highway.—(1)  If,  at  any  time,  the  Central  Government  is  of  opinion  that  in  the  public 
interest  it  is  necessary  or  expedient  so  to  do,  it  may,  by  order,  direct  the  Authority  to  entrust  the 
development,  maintenance  or  management  of  any  national  highway  or  a  part  thereof  with  effect  from 
such date and for such period and to such person as may be specified in the order and the Authority shall 
be bound to comply with such direction. 

(2)  Where  development,  maintenance  or  management  of  any  national  highway  or  part  thereof  is 
entrusted  to  any  person  specified  under  sub-section  (1)  (hereafter  in  this  section  referred  to  as  the 
authorised person), the Authority shall cease to exercise and discharge all its powers and functions under 
this  Act  in  relation  to  such  national  highway  or  part  thereof  and  such  powers  and  functions  shall  be 
exercised and discharged by the authorised person in accordance with the instructions, if any, which the 
Central Government may give to the authorised person from time to time: 

Provided that no such power or function as may be specified by the Central Government by a general 
or  special  order  shall  be  exercised  or  discharged  by  the  authorised  person  except  with  the  previous 
sanction of the Central Government. 

(3)  The  Central  Government  may  reduce  or  extend  the  period  mentioned  in  sub-section  (1)  as  it 

considers necessary. 

(4) During the operation of an order made under sub-section (1), it shall be competent for the Central 
Government to issue, from time to time, such directions to the Authority as are necessary to enable the 
authorised person to exercise the powers and discharge the functions of the Authority under this Act in 
relation to the national highway or part thereof, the management of which has been entrusted to him and 
in particular, to transfer any sum of money from the Fund of the Authority to the authorised person for the 
management of the national highway or part thereof and every such direction shall be complied with by 
the Authority. 

(5)  On  the  cesser  of  operation  of  any  order  made  under  sub-section  (1)  in  relation  to  any  national 
highway  or  part  thereof,  the  authorised  person  shall  cease  to  exercise  and  perform  the  powers  and 

8 

 
functions  of  the  Authority  under  this  Act  in  relation  to  such  national  highway  or  part  thereof  and  the 
Authority  shall  continue  to  exercise  and  perform  such  powers  and  functions  in  accordance  with  the 
provisions of this Act. 

(6)  On  the  cesser  of  operation  of  any  order  made  under  sub-section  (1)  in  relation  to  any  national 
highway or part thereof, the authorised person shall hand over to the Authority any property (including 
any  sum  of  money  or  other  asset)  remaining  with  him  in  connection  with  the  management  of  such 
national highway or part thereof. 

32. Power of the Central Government to supersede the Authority.—(1) If, at any time, the Central 

Government is of opinion— 

(a) that on account of a grave emergency the Authority is unable to discharge the functions and 

duties imposed on it by or under the provisions of this Act; or 

(b) that the Authority has persistently made default in complying with any direction issued by the 
Central Government under this Act or in the discharge of the functions and duties imposed on it by or 
under the provisions of this Act; or 

(c) that circumstances exist which render it necessary in the public interest so to do, 

the  Central  Government  may,  by  notification  in  the  Official  Gazette,  supersede  the  Authority  for  such 
period, not exceeding one year, as may be specified in the notification: 

Provided  that  before  issuing  a  notification  under  this  sub-section  for  the  reasons  mentioned  in               

clause  (b),  the  Central  Government  shall  give  a  reasonable  opportunity  to  the Authority  to  show  cause 
why  it  should  not  be  superseded  and  shall  consider  the  explanations  and  objections,  if  any,  of  the 
Authority. 

(2) Upon the publication of a notification under sub-section (1) superseding the Authority,— 

(a) all the members shall, as from the date of supersession, vacate their offices as such; 

(b)  all  the  powers,  functions  and  duties  which  may,  or  under  the  provisions  of  this  Act,  be 
exercised  or  discharged  by  or  on  behalf  of  the  Authority,  shall,  until  the  Authority  is  reconstituted 
under  sub-section  (3),  be  exercised  and  discharged  by  such  person  or  persons  as  the  Central 
Government may direct; 

(c)  all  property  owned  or  controlled  by  the  Authority  shall,  until  the  Authority  is  reconstituted 

under sub-section (3), vest in the Central Government. 

(3)  On  the  expiration  of  the  period  of  supersession  specified  in  the  notification  issued  under            

sub-section (1), the Central Government may— 

(a)  extend  the  period  of  supersession  for  such  further  term,  not  exceeding  one  year,  as  it  may 

consider necessary; or 

(b) reconstitute the Authority by fresh appointment and in such a case, any person who vacated 

office under clause (a) of sub-section (2) shall not be deemed disqualified for appointment: 

Provided  that  the  Central  Government  may,  at  any  time  before  the  expiration  of  the  period  of 
supersession whether as originally specified under sub-section (1) or as extended under this sub-section, 
take action under clause (b) of this sub-section. 

(4)  The  Central  Government  shall  cause  a  notification  issued  under  sub-section  (1)  or                            

sub-section (3) and a full report of any action taken under this section and the circumstances leading to 
such action to be laid before both Houses of Parliament as soon as may be. 

33.  Power  of  the  Central  Government  to  issue  directions.—(1)  Without  prejudice  to  the  other 
provisions of this Act, the Authority shall, in the discharge of its functions and duties under this Act, be 
bound by such directions on questions of policy as the Central Government may give to it in writing from 
time to time. 

(2) The decision of the Central Government whether a question is one of policy or not shall be final. 

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34.  Power  of  the  Central  Government  to  make  rules.—(1)  The  Central  Government  may,  by 

notification in the Official Gazette, make rules for carrying out the provisions of this Act. 

(2)  In  particular,  and  without  prejudice  to  the  generality  of  the  foregoing  power,  such  rules  may 

provide for— 

(a) the term of office and other conditions of service of the members; 

(b) the powers and duties of the Chairman and of the members; 

(c) the terms and conditions subject to which the non-recurring expenditure incurred by or for the 
Central Government for or in connection with the purposes of any national highway shall be treated 
as capital provided by the Central Government to the Authority under clause (b) of sub-section (1) of 
section 12; 

(d) the value or amount required to be prescribed under sub-section (1) of section 15; 
1[(dd) the terms and conditions subject to which the functions of the Authority may be entrusted 

to any person under clause (h) of sub-section (2) of section 16;] 

(e)  the  form  in  which  and  the  time  within  which  the  Authority  shall  prepare  its  budget  under 

section 19 and its annual report under section 22; 

(f) the manner in which the Authority may invest its funds under section 20; 

(g)  the  manner  in  which the  accounts  of  the  Authority  shall  be  maintained  and audited  and  the 
date before which the audited copy of the accounts together with the auditor’s report thereon shall be 
furnished to the Central Government under section 23; 

(h)  the  conditions  and  restrictions  with  respect  to  the  exercise  of  the  power  to  enter  under            

section 30 and the matters referred to in clause (f) of that section; and 

(i) any other matter which is required to be, or may be, prescribed. 

35.  Power  of  the  Authority  to  make  regulations.—(1)  The  Authority  may,  by  notification  in  the 
Official Gazette, make regulations not inconsistent with this Act and the rules made thereunder to carry 
out the provisions of this Act. 

(2) In particular, and without prejudice to the generality of the foregoing power, such regulations may 

provide for all or any of the following matters, namely:— 

(a) the times and places of the meetings of the Authority and the procedure to be followed for the 

transaction of business at such meetings; 

(b) the terms and conditions of service, method of recruitment and the remuneration of officers 

and other employees appointed by the Authority; 

(c) the form and manner in which a contract or class of contracts may be made by the Authority 
and  the  contracts  or  classes  of  contracts  which  are  to  be  sealed  with  the  common  seal  of  the 
Authority; 

(d) the manner of preventing obstructions on the national highways for their normal functioning; 

(e)  the  manner  of  prohibiting  the  parking  or  waiting  of  any  vehicle  or  carriage  on  the  national 

highway except at places specified by the Authority; 

(f) the manner of prohibiting or restricting access to any part of the national highway; 

(g) the manner of regulating or restricting advertisements on and around national highways; and 

(h) generally for the efficient and proper maintenance and management of the national highways. 

1. Ins. by Act 16 of 1997, s. 9 (w.e.f. 24-1-1997). 

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36. Power to  remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of 
this Act, the Central Government may, by notification in the Official Gazette, make order not inconsistent 
with the provisions of this Act as may appear to it to be necessary or expedient for the removal of the 
difficulty: 

Provided that no such order shall be made after the expiration of two years from the commencement 

of this Act. 

(2) Every order made under this section shall be laid, as soon as may be after it is made, before each 

House of Parliament. 

37.  Rules  and  regulations  to  be  laid  before  Parliament.—Every  rule  and  every  regulation  made 
under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it 
is in session, for a total period of thirty days which may be comprised in one session or in two or more 
successive  sessions,  and  if,  before  the  expiry  of  the  session  immediately  following  the  session  or  the 
successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or 
both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter 
have effect only in such modified form or be of no effect, as the case may be; so, however, that any such 
modification or annulment shall be without prejudice to the validity of anything previously done under 
that rule or regulation. 

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